Legal AND Equity Assignment PDF

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LEGAL AND EQUITY ASSIGNMENT 

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Transfer your right to someone else – constructive transfer of some species of property, or interest in property with a clear intent at the time to part with all interest in the thing transferred. Assignment is the process whereby a person, the assignor transfers rights or benefits to another, assignee

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Legal Assignment  

Section 4(3) of CLA Any absolute assignment by writing under the hand of the assignor not purporting to be by the way of charge only, of any debt or other legal chosen action of which express notice in writing has been given to debtor, trustee or other person from whom the assignor would have been entitled to receive or claim the debt or chose in action shall be and be deemed to have been, effectual in law subject to all equities which would have been entitled to priority over the right of the assignee under the law as it is existed in the state before the date of the coming into force of this Act to pass and transfer the legal right to the debt or chose in action from the date of the notice and all legal and other remedies for the same and the power to give a good discharge for the same, without the concurrence of the assignor.

Requirements of Legal Assignment 1.

Assignment must be in writing – under the hand of the assignor (can use deed of assignment)

Absolute assignment – its not absolute if it is merely part of a debt or conditional, not by way of charge. Notice in writing must be given to the debtor Consent of the debtor is not required Assignment in respect of a debt or other legal chose in action. Chose in action – recoverable only by an action at law-recoverable only by action at law Chose are personal property rights, not reducible to immediate tangible possession, not capable of physical delivery; but recoverable only in an action at law. MBF Factors Sdn Bhd v Tay Hing Ju -

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Issue is whether the agreement could be an absolute assignment within the meaning of s 4(3) of civil law act? Held: whereas s4(3) CLA applies, the assignee is allowed to sue the debtor in his own name instead of having to sue in the name of assignor & perhaps having to go to a court to compel his joinder in the action. Effect: to confer the same rights to the assignee as possessed by the assignor before the assignment

Requirement of Equitable Assignment a)

Intention to assign A clear intention to assign; may be by word of mouth The meaning is plain All that the matter is that the debtor should understand that the debt has

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been made over by the creditor to some third person. Equity looks at the intention rather that the form. The subject matter must be clearly identifiable Must sufficiently identify the chose in action which is being assigned There must be some form of assignment The court must be able to identify from the communication or correspondences between the parties for the assignment to take effect. Mandate or authority not enough. The absence of form does not mean that the assignment may be so vague that it is impossible to gather the real intention behind it. Re Williams v Ball 1917 Malayawata Steel Sdn Bhd v Govt of Msia

Effect of Notice to the Debtor in an Equitable Assignment -

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An equitable assignment made between the assignor and assignee is complete and binding even if no notice is given to the debtor but notice is desirable. With notice, the assignee has the right in rem, but without it, the assignee has the right in personam.

Malaysian International Merchant Bankers Bhd v Malaysian Airlines System – whether there was an equitable assignment.

Assignment of Expectancies  

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Expectancies are future interests in a subject matter. At common law,, assignments of future chose in action were void, for no one could assign he had not have. But in equity, any such purported assignment made for valuable consideration has always been treated as a contract to assign in the future if and when the chose comes into existence. Once the assignor has received the valuable consideration and possessed the property, the beneficial interest in the property passes to the assignee immediately. Example of assignable future interests o Expectation of inheriting the estate of an ancestor who is still alive o Future income, future royalties or copyright in music yet to be composed or songs yet to be written o Future damages expected to be recovered in an ongoing law suit.

Ineffective Assignment 

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Certain assignments are prohibited by statute and ineffective on the grounds of public policy Chose in action not assignable on public policy considerations o Public pay – to ensure a due discharge of the public pay

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Alimony or maintenance pending suit granted to a wife by court of law Champerty An illegal agreement in which a person with no previous interest in a lawsuit finances it with a view to sharing the disputed property if the suit succeeds....